General News

Apr 28 2021

KingsCrowd, a Ratings and Analytics Firm for Private Securities Market, Releases New Regulation CF Report

KingsCrowd, the online private market’s data-driven ratings and analytics platform, announced on Tuesday (April 27, 2021) the publication and availability of the KingsCrowd Regulation Crowdfunding 2018-2020 Intelligence Report.

The KingsCrowd Regulation Crowdfunding 2018-2020 Intelligence Report reportedly covers more than 150 Regulation Crowdfunding (Reg CF) market statistics, key insights, and analytics. These items are presented in an “easy-to-read” visual format. Readers get an extensive overview of the Reg CF market as of last year, along with a preview of what is set to be a “record-shattering” 2021, according to a release.

In 2020, startups secured over $210 million via equity crowdfunding. This total represents year-over-year growth of about 110% from 2019’s total funding and notably marks the fourth year early-stage firms have been able to acquire investment capital from the public under the JOBS Act’s Regulation Crowdfunding rules.

KingsCrowd Founder and CEO Chris Lustrino, stated:

“The release of this first edition of our Regulation Crowdfunding Intelligence Report couldn’t come at a better time. On March 15, the U.S. Securities and Exchange increased the maximum raise amount under Regulation Crowdfunding rules from $1.07 million to $5 million. This marks a watershed moment for our industry and makes Regulation Crowdfunding a viable alternative to traditional venture capital and. KingsCrowd’s Regulation Crowdfunding 2018-2020 Intelligence Report was written for anyone interested in the Reg CF market and looking to update themselves on this fast-growing space quickly.”

A few takeaways from the report:

For the year 2020, “more than $210 million was invested in Reg CF raise campaigns.”
The average valuation of companies raising funds in 2020 “was $11.35 million, a 24% increase from 2018’s average valuation and up slightly from 2019’s $11.19 million figure.”
Second half 2020 data “shows 291 out of 964 start-up companies raised capital exhibited mixed-gender founding teams while 27% of all entities that raised funds through Reg CF included minority founders.”

KingsCrowd says that it’s at the “intersection between early-stage companies seeking growth capital and startup investors.” By offering “institutional-grade” data and analysis that stakeholders can “trust,” KingsCrowd allows anyone to “invest like a venture capitalist.”

KingsCrowd’s Merlin™ Ratings Platform analyzes over 150 data points to offer key insights, analytics, and ratings “to help investors navigate the startup investing market and vet the best deals worth adding to their investment portfolio.”

In late January 2021, Wefunder, a leading securities crowdfunding platform, highlighted Q4 performance in the Reg CF crowdfunding sector. According to the numbers generated by Kingscrowd, Wefunder dominated this sector of online capital formation.

Now crowdfunding encompasses other exemptions, including Reg A+ and Reg D (506c). Each of these exemptions is unique in its own way (Reg D is only available for accredited investors, for example), and many platforms offer securities under all three exemptions, including Wefunder but the bulk of the platform’s securities offerings are from issuers raising capital under Reg CF.

The numbers show Wefunder topping its nearest competitor under Reg CF by almost $10 million:

Wefunder – $29 million
StartEngine – $19.8 million
Republic – $9.9 million
All others – $12.6 million

As covered in March 2020, KingsCrowd closed on a $1 million crowdfunding round on the NetCapital marketplace. NetCapital lists private securities under both Reg CF and Reg D. The KingsCrowd offering leveraged both exemptions in a side-by-side offering. KingsCrowd said it raised $902,952 under Reg CF and $97,048.80 under Reg D 506 (c). 555,556 units were sold. Kingscrowd is a ValueSetters, Inc. (OTC:VSTR) portfolio company.

You may download a copy of the KingsCrowd’s Regulation Crowdfunding 2018-2020 Intelligence Report here.

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Apr 24 2021

UK Fintech Freetrade Survey Reveals that Brits Struggled with Financial Literacy Questions on ISAs, Retirement Planning

A recent research study has found that a lack of proper financial education has left consumers across the UK a bit confused with how to manage their funds. The study reveals that UK residents may be dealing with detrimental effects on their confidence, mental well-being and their overall health.

Digital investment app provider Freetrade had prepared the Great British Financial Literacy Test— which includes 18 questions on savings, investment, ISAs and retirement that most people will have to deal with at some point in their lifetime.

Asking 2,000 UK residents to complete the financial literacy test, Freetrade found that nearly 50% of respondents (48%) were unable to answer simple questions regarding personal finance such as what an (individual savings account) ISA stands for, the difference between fixed rates and variable rates, and what annuity providers do at the time when a person gets ready for retirement.

Notably, the Freetrade study reveals that retirement was a key area of personal finance that UK consumers really struggled to understand with around or 4 in 5 or 80% of respondents saying they couldn’t correctly answer this part of the financial literacy test. This particular figure was 81% among people 55 or older (getting ready to approach retirement age).

The average pass rates for questions related to making investments were the second-lowest at 44%. This was followed by savings (34%) and ISAs (32%). The Freetrade survey further revealed that consumers weren’t too confident about aspects of personal finance. Approximately 88% of UK citizens claim they lack confidence when it comes to money, and 32% noted that this also created a negative impact on their mental wellbeing.

Around 90% of survey participants said that they’re not confident when making investments. About 90% of UK residents responding to they sruvey also said they feel like they can’t effectively manage their retirement funds. Around 88% of the UK consumers taking part in the survey noted that they’re not too confident about ISAs.

Dan Lane, Senior Analyst at Freetrade, stated:

“The greatest advantage you can give your investments is time. So it’s concerning that the cohort with the most time on their hands feels so ill-equipped. Whether we realise it or not, investing early on in life could be the difference between reaching our eventual financial goals or missing them entirely. Getting to grips with the basic concepts later in life might just be too late.”

Lane further noted:

“There should be alarm bells ringing about the fact that 90% of Brits lack confidence with their pensions. With advances in medical technology and increased life expectancies we’re likely to live longer in retirement than ever before. But a massive gap in our understanding of how to invest for our third age, or even how to access those investments suitably later on, means we really aren’t prepared for a sizable portion of our lives. Unless we’re thinking about investing for retirement long before we get there, we could end up in the awful position of regretting the simple financial decisions we made 30 years ago.”

Lane added:

“It’s a real sign of the nation’s lack of financial education when a huge portion of the population doesn’t know the name of one of the most common savings products. The frustrating thing about the lack of confidence around ISAs is just how helpful, accessible and easy to use ISAs can be. Chances are, if we’re unsure about the headline facts around ISAs, we’re not using them to help us as much as we could.”

Lane continued:

“Basic concepts like compound interest might be ticked off in the National Curriculum but setting us up to deal with that in the real world takes more than a textbook exercise. These results should be a wake-up call for the nation’s education system to equip young people well enough to put theory into practice.”

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Apr 13 2021

Goldman Sachs Opens Office in Birmingham UK

In a significant endorsement of the city, Goldman Sachs (NYSE:GS) has opened an office in Birmingham, UK – a community that has been promoting itself as an alternative to super pricey London.

Goldman Sachs stated that Birmingham offers access to a deep talent pool, excellent academic institutions, and a growing technology sector. The easy proximity to London is said to be an advantage as well. Goldman said that engineering will be the first division to build out in Birmingham and they expect to have a headcount of several hundred across a number of divisions over time. Beyond its investment banking business, Goldman also operates its digital bank Marcus in the UK.

In a report from last year, the regional representatives said that Fintechs already employed about 24,000 people in Birmingham.

Neil Rami, Chief Executive of West Midlands Growth Company, the official investment promotion agency that helped to secure the investment, on the significance of the bank’s major new presence among the West Midlands’ Business Professional and Financial Services (BPFS) sector commented on the news:

“Goldman Sachs is one of the world’s most prestigious investment banking institutions, renowned for its laser-focus on recruiting the best and brightest talent and the pre-eminence of its data-driven, customer-centric technologies. We are delighted that Goldman Sachs has chosen Birmingham as the home of its major new presence, where it will harness the region’s entrepreneurial talent to develop its mission-critical digital expertise, creating hundreds of jobs. As the investment banking landscape continues to innovate in the face of rapid Fintech transformation, the West Midlands Growth Company put forward a compelling appraisal of the region’s digital engineering workforce, academic facilities and long-standing influence in the field of banking and finance. The region boasts the largest and most high-value Financial & Professional Services sector outside the capital and is super-charging the UK’s innovative potential through SuperTech; the UK’s first and only dedicated professional services-tech accelerator.”

Rami added that the area is already home to other financial services firms such as HSBC’s UK headquarters and Deutsche Bank. He said that the West Midlands is successfully recasting typically London-centric banking structures, offering a premium but far more cost-effective base for innovative businesses.

“This is just the beginning of a surge in momentum in foreign investment here, with the 2022 Commonwealth Games and Coventry’s City of Culture status opening up new international avenues to strengthen trade and investment flows into the region. We look forward to supporting Goldman Sachs’ long and prosperous journey here in the West Midlands,” said Rami

Richard Gnodde, CEO for Goldman Sachs International, stated:

“Establishing a new office in Birmingham will diversify our UK footprint and give us access to a broad and deep talent pool in the local area. We see tremendous opportunity to enhance our UK presence and continue delivering for our global clients.”

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Apr 08 2021

Malaysia based Telecom Axiata Group and Norway’s Telenor to Merge Malaysian Mobile Businesses

Axiata Group and Telenor Asia revealed on Thursday (April 8, 2021) that they’ve revisted and confirmed their merger plans involving Celcom and Digi. At present, the deal is in advanced discussions.

Malaysian telecoms company Axiata Group Bhd and Norway-based Telenor ASA will be focused on merging their Malaysia-based mobile business operations.

Both firms stated that they had been planning the merger of the telco operations of Celcom Axiata Berhad and Digi.Com Bhd. As part of the deal, both companies will have equal ownership (at around 33% for each company).

As first reported by Reuters, Malaysian institutional investors need to own at least 17.9% of the outstanding shares in the new firm, ensuring that the total domestic ownership is more than 51%, Axiata confirmed.

The firm will be known as Celcom Digi Bhd.

Reuters had also reported earlier that Axiata and Telenor were planning to confirm a deal that was expected to involve the Malaysia-based mobile operations of both companies.

As part of the deal, Axiata will be getting newly issued shares in Digi, which is a cash consideration from new debt in the merged firm of around $400 million and an additional $70 million from Telenor Group, Telenor’s management noted.

Telenor also mentioned:

“A transaction will realize synergies and provide value for shareholders in line with our strategy of further developing Telenor’s Asian portfolio.”

The Norwegian firm, which is the major shareholder in Digi, has other Asia-based operations in Bangladesh, Pakistan, Myanmar, and Thailand.

Axiata’s management confirmed that the merged entity will aim to serve as “a leading telecommunications service provider in Malaysia in terms of value, revenue and profit.” It’s expected to generate proforma revenue of approximately 12.4 billion ringgit or around $3 billion USD.

The entity is also expected to have earnings before interest, taxes, depreciation and amortisation of around 5.7 billion ringgit, and about 19 million customers.

Trading in the company shares of Axiata and Digi had been suspended earlier, as the announcement details were being finalized.

In September of last year, Axiata and Telenor had backed out of a potential deal to establish a telecoms joint initiative with almost 300 million clients based in Southeast Asia. The firms had said that the transaction may have led to certain “complexities” which is why they didn’t follow through with it.

During 2020, Telenor had also been planning to combine its Asia-based business operations into one entity under new management so that it could work on other initiatives more effectively.

Digi is notably one of Malaysia’s biggest mobile services platforms in terms of subscribers, while Axiata’s local division Celcom is the third-largest.

As covered in February of last year, the Telenor Microfinance Bank of Pakistan revealed the new DLT-based cross-border payments service, which is available via Easypaisa, a leading mobile-based digital wallet.

The Easypaisa online wallet app lets Pakistani citizens, working in Malaysia, send money back home instantly and securely, via Telenor’s Malaysia-headquartered payment platform Valyou.

As reported in June 2020, GREAT Eastern (Life Assurance), the largest life insurance company in Singapore and Malaysia, had confirmed a $70 million investment into Axiata Digital’s financial services business, in order to take part in the company’s Fintech-focused plans, according to Khor Hock Seng, group CEO at Great Eastern.

The investment was reportedly made through a newly launched holding company, called Boost Holdings.

As mentioned in the announcement, Boost Holdings is a wholly-owned subsidiary of Axiata Digital, which is the digital services division of the Axiata Group, a major telecommunications group in Malaysia.

After finalizing the investment, Great Eastern will have a 21.875% stake in Boost Holdings. As noted in the release, Axiata Digital Services will be holding the remaining stake in the company.

Malaysia-based Boost offers a digital wallet and lifestyle app which has more than 7.5 million users and around 170,000 merchant touchpoints (as of June 2020).

The investment will reportedly be used to finance Axiata Digital’s new digital financial services business in Malaysia (and in Asia in general). The expansion includes Boost Holdings’ plans to support and develop its merchants network while onboarding more customers. The funds will also be used to improve Aspirasi’s credit-scoring technology. Aspirasi is an online micro-financing and micro-insurance provider.

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Apr 07 2021

European B2B Wealthtech Allfunds Set to List on Euronext Amsterdam Stock Exchange

Madrid-based Allfunds, a B2B Wealthtech solution provider, will reportedy be listing on the Euronext Amsterdam stock exchange.

Allfunds has developed a comprehensive ecosystem that aims to cover the complete fund distribution value chain and related investment cycles, including through Allfunds Connect, which is a suite of software-as-a-service or SaaS-powered digital, data and analytics software tools.

Allfunds had more than €1.2 trillion of assets under administration, as of December 2020. The company reports around €370 million in turnover and about €263 million adjusted Ebitda. The group also reports a growth rate of 13% during the last 3 months.

Allfunds has hired BNP Paribas, Credit Suisse Securities, Citigroup Global Markets and Morgan Stanley Europe as its joint bookrunner, for this latest offering, which includes a private placement of 25% of the firm’s outstanding shares that are held by LHC3, BNP Paribas and Credit Suisse.

Although AllFunds won’t be getting any proceeds from the sale, the firm thinks that the listing could potentially provide access to diversified sources of financing and enhance its profile and general brand awareness.

Juan Alcaraz, founder and CEO of Allfunds, stated:

“We have built an ecosystem that covers the entire fund distribution value chain and investment cycle, integrated into a simple one-stop-shop for our clients. This listing provides us with the flexibility to accelerate the digital transformation of the wealth management industry and the growth of our best-in-class global platform.”

Allfunds may expand it business operations into other regions where it maintains a relatively smaller market presence, including in Asian and North American markets.

Allfunds, which claims to be the largest fund platform and world leader in the wealthtech space, recently launched a new mobile app for its digital eco-system Connect.

As mentioned in a company blog post:

“With the Connect App users will be able to track funds, manage portfolios wherever they are and never miss a critical alert. Users will be able to access information on their funds or adjust their portfolios at any time.”

Some other notable functions include:

Search, analyze, compare and monitor, from more than 200,000 funds at ETFs
Set-up and “access multiple alerts”
Stay “on top of watchlists that track funds”
Manage and “maintain control of portfolios accessing performance, risk, asset allocation and transactions”
With the Connect mobile app, users “leverage the power of Allfunds to manage funds and portfolios anytime, anywhere.”

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